Sapporo Namba Shinjuku Store Store West Store Securities Code: 3048 A B CＣ Kashiwa Fujisawa Yurakucho Store Store Store D E F Tenjin Ikebukuro Nagoya Sta. Build. No.2 Main Store West Store G H IＩ Table of Contents 1.Corporate Summary 2.Our Strengths 3.Growth Strategies 4.Reference 1 1. Corporate Summary 2 Corporate Summary “A complex of specialty stores that are committed to bringing you a more affluent Visions lifestyle” Position in The 4th largest electric retailer with a market share of 6.3% the industry (Computed from the results and forecasts for Fiscal 2007) Classifications of electronic We are the only one listed company of “Urban type” retailers Branch policy “Station front” x “Large scale” Financial We have achieved an increase in revenues and earnings every year since 2004. highlights Profit for this fiscal year is projected to be record-high. We were listed on the JASDAQ market in August, 2006. Stock listing We were selected as a J-Stock issue in May 2007. 3 Position in the electric retailer market Projected sales for fiscal year 2007 Yamada Denki 1,443 Edion 740 Yamada Denki 17.0% Yodobashi Camera 601 Others Edion 8.7% Bic Camera 538 41.9% Yodobashi Camera 7.1% Kojima 501 Bic Camera 6.3% K’s HD 431 Kojima 5.9% Best Denki 368 K’s HD 5.1% Best Denki 4.3% Joshin Denki 315 Joshin Denki 3.7% (JPY billion) 0 300 600 900 1,200 1,500 Source: Created by us based on the documents disclosed by each company (Nikkei MJ for Yodobashi Camera) Note: Mar/06 non-consolidated results for Yodobashi Camera, Aug/07 consolidated forecasts for us, Feb/07 consolidated results for Best Denki, Mar/07 consolidated results for others The shares were calculated based on the fiscal ’04 industry market scale of approximately 8.5 trillion yen (source: RIC). 4 Features of Bic Camera – Urban-type model Large Yodobashi 1. Sales per store Camera 2. Sales per floor space Urban type Yamada Denki Edion K’s HD Kojima Joshin Denki Best Denki Suburban type Small Sales floor space per store Large 5 Store Deployment Store deployment of “Urban type” x “Station front” x “Large scale” Made Sofmap (2nd section of TSE) a subsidiary in Feb., 2006 Ikebukuro West Exit Store 24 Bic Camera stores Sapporo Store A Ikebukuro Main Store H + Ikebukuro East Exit Camera Build. PC Build. Ikebukuro Main Store 28 Sofmap stores Ikebukuro East Exit General Build. Shinjuku East Exit Store Yurakucho Store F Takasaki East Exit Store Shinjuku West Exit Store C (Main Build./Annex) Omiya West Exist Sogo Store Shibuya East Exit Store Kyoto Station Store Tachikawa Store Aug., ’07 (Scheduled) Shibuya Hachiko Exit Store Okayama Station Store Kashiwa Store Nov., ’07 (Scheduled) D Lazona Kawasaki Store Yokohama West Exit Store Tenjin Build. No.1 Fujisawa Store E PC Build. Yokohama Station Store Tenjin Build. No.2 G Nagoya Sta. West Store I Shin Yokohama Store Namba Store B New Shin Yokohama Station Store March, ’08 (Scheduled) Note: Ones in red are stores scheduled to open 6 Financial Highlights (Consolidated) Net sales Ordinary income / ratio Net income / ratio JPY billion 600 JPY billion （%） JPY billion （%） 16 4.0 8 1.6 500 3.4 1.3 1.3 2.9 400 12 2.7 2.6 3.0 6 1.2 300 538.0 8 2.0 4 0.7 0.7 0.8 14.7 433.1 480.4 12.7 200 11.1 15.7 6.0 6.8 406.7 4 1.0 2 0.4 100 2.7 3.0 0 0 0.0 0 0 '04.8 '05.8 '06.8 '07.8 (Forecast) '04.8 '05.8 '06.8 '07.8 '04.8 '05.8 '06.8 '07.8 (Forecast) (Forecast) (Forecasts for the year ending Aug., 2007) ■ Sales ◆Contribution of new stores, effect of consolidating Sofmap -> JPY 538.0 billion, a YOY increase of 12.0% Expected to ■Ordinary income ◆Effect of increase in sales, reduction in SG&A expenses -> JPY 15.7 billion, a YOY increase be record- of 23.3% ■Net income high ◆JPY 6.8 billion, a YOY increase of 13.2% despite extraordinary loss of JPY 1.95 billion 7 2. Our Strengths 8 “Urban type” x “Station front” x “Large scale” store Flagship store – Yurakucho Store – 9 Our Strengths (Summary) Corporate The most vigorous company for 6 consecutive years! image ・Over 700 “qualified” expert sales persons (leaders) Expertise ・About 700,000 items ・Proposal-based store making with bodily sensation and experience Know-how of regarded as important store making ・Enriching various consultation counters ・Net sales per store, sales per 1m2 and inventory turnover Efficiency ・Stable customer attractions (not only on weekends, but also on weekdays) 10 Aggressive corporate image Nihon Keizai Shinbun(Nikkei) “Corporate Image Research” Year 2006 Ranking “Vigorous company” No.１ for 6 consecutive years Strong sales ability Vigorous company st 2nd: Kirin Brewery [Business people research] [General individual research] １/1,178 companies 3rd: Toyota Motor Proactive in self- transformation st 2nd: Nissan Motor st st rd １/1,178 companies 3 : Yodobashi Camera Popularity ranking of companies １ １ where job-seekers want to work (Surveyed by Recruit Co., Ltd.) /1,178 companies /1,178 companies Bic Camera 257th 2nd: Yodobashi Camera 2nd: Coca-Cola Japan YC 354th 3rd: Fuji TV Network 3rd: Fuji TV Network YD 902nd 11 Sales ability supported by expertise Pursuit of high-level of product knowledge and customer service skills ■ More than 700 “qualified” expert advisors (our unique system) ■ 3rd party license recommended - More than 400 Home appliances advisors Association for Electric Home Appliances - Approx. 70 photo masters (3rd grade – EX) International Culture College Association Photo Master License Exam. Committee High-level customer Ability to sell advanced / service skills expensive product 12 Attractive store making know-how “Alarm clock” section Theatre PC consultation counter that make customers comfortable “Single-lens reflex camera” section Kitchen Stadium Digital broadcasting consultation counter “Headphone” section Demonstration of washing machines Bulk-buying counter Store making with bodily Enriching various About 700,000 items sensation and experience regarded as important consultation counters 13 Store deployment pursuing efficiency & profitability Highly efficient “Urban type” stores Net sales per store under direct management Net sales per 1㎡ Bic Camera 18,615 Bic Camera 3,309 YD 4,780 YD 1,383 E E 802 2,039 (JPY million) (JPY thousand) 0 5,000 10,000 15,000 20,000 0800 1,6002,400 3,200 Source: Calculated by us based on the documents disclosed by each company Note: Aug/06 non-consolidated results for us, Mar/07 non-consolidated results for YD, Mar/07 consolidated results for E High inventory turnover Annual inventory turnover Bic Camera 23.1 23.1 times * YD 11.0 ⇒” Far better turnover than those of our E 8.3 Major Supermarket IY 19.1 competitors” (times) 0 5 10 15 20 25 * <Sales / (Inventory at beginning of the period +Inventory at end of the period) *1/2> Source: Calculated from the documents disclosed by each company Note: Aug/06 non-consolidated results for us, Mar/07 non-consolidated results for YD, Mar/07 consolidated results for E, Feb/07 non-consolidated results for major supermarket operator IY 14 3. Growth Strategies 15 Growth strategies (Summary) We continue to grow capitalizing on our strengths of “Urban type” To open about 2 stores of “Station front” x “Large scale” Store opening per year in the metropolitan area and major cities across the country Store renewal To deliberately carry out store renovation Internet shopping To renew websites, to use common points with actual stores To start TV shopping via digital high vision satellite broadcasting TV shopping in December 2007 through our subsidiary Nippon BS Broadcasting Corporation To introduce “Bic Camera Suica Card” whose points can be Cards converted into electronic money “Suica,” which can be used for public transportation means Business alliance To promote business alliance with Edion 16 Our future store opening plans Okayama Station Store Continuous growth by ■First store to be opened in opening stores the Chugoku region ◆Scheduled to be opened in the Kyoto Station Store November 2007 ◆Sales floor area: Approx. 2 ■Directly connected with the JR 8,200 m Kyoto station platforms Sofmap Akihabara New Main Build. ◆Scheduled to be opened in August, ■New foothold of newly-born 2007 Sofmap ◆Sales floor area: Approx. 10,000 m2 ◆Scheduled to be opened in September 2007 ◆Sales floor area: Approx. 4,900 m2 New Shin Yokohama Station Store ■Moving to the new station build. ◆Core tenant of the new station build. ◆Scheduled to be opened in March, 2008 ◆The sales floor area will triple (Approx. 2000 m2 ⇒Approx. 7000 m2) 17 Renovation of existing stores Year ending August, 2007 ■ To carry out store remodeling and product make-up review ◆Remodeling the Ikebukuro Main Store ◆Changing the make-ups of the products at the 2 Ikebukuro East Exit stores (Already done) ◆Scheduled to do the same for the Shibuya East Exit Store, Tachikawa Store, Namba Store, Sapporo Store and other stores Expected effects ■Increase in sales due to improvement of ability to attract customers ◆Improvement of customer satisfaction due to improvement of the in-store environment ◆Increase in earning power due to increase in the Remodeled Ikebukuro proportion of sales of home appliances Main Store 18 Status of the “Bic Camera Suica Card” The only credit card in the industry tie-up with East Japan Railway Co., Ltd. ・Bic Points can be converted into electronic money “Suica.” ・The service matches urban type stores. A Bic Camera Suica Card Bic Point Card Bic Camera Suica Card immediate issuance counter SwitchSwitch New Started in 1992 19,000,000 # of applications: set up at each store applications Over 300,000 PrivatePrivate railway railway / /subway subway / /bus bus users users New ＪＲ Mutual use of Suica and PASMO customers ＪＲusersusers Mutual use of Suica and PASMO StartedStarted (March (March 18, 18, ’07 ’07 -) -) 19 Sofmap Co., Ltd.